UK Takeover Panel Seeks to Clarify Position on Syndication of Debt in UK Takeovers

June 25, 2009
On 17 June the UK Takeover Panel, with the assistance of the Loan Market Association and the London Investment Banking Association, released Practice Statement 25, which has broad implications for any private equity house or corporation seeking to takeover a UK public company. Practice Statement 25 addresses certain obstacles to banks joining debt syndicates in UK public takeovers where they have a position in the shares of the target company. The Takeover Panel has outlined an information barrier regime, which is intended to enable easier syndication of debt finance in UK public takeovers. This update examines the Panel’s actions.